Workers Compensation - Inclusion/Exclusion

1. If a prospect has an employee and makes the conscious decision NOT to purchase a Workers Compensation policy for the business -- there is a rejection form on Homefield you can have them sign?

True

False

By typing in the search 'Workers Compensation' you will find N-WC0056 - "Workers Compensation Policy Rejection Statement" which allows you to have the employer sign the statement and place it in your file to alleviate any confusion if an injury to an employee does occur.

Explanation

By typing in the search 'Workers Compensation' you will find N-WC0056 - "Workers Compensation Policy Rejection Statement" which allows you to have the employer sign the statement and place it in your file to alleviate any confusion if an injury to an employee does occur.

2. Farm Bureau chooses not to write stand alone Workers Compensation policies?

True

False

This is true. We provide workers compensation as an accommodation to our current client base.

Explanation

This is true. We provide workers compensation as an accommodation to our current client base.

3. The max limit an employee can collect for an injury is the typical 100/500/100 limits found for disease, injury, accident on the Workers Compensation policy?

True

False

These limits have to do with employers liability (Employers Liability covers liability arising out of an employees' work-related injuries that do not fall under the workers compensation statute.) --- employees injured while at work are subject to State statutes -- not any limit posed on the declarations of a workers compensation policy.

Explanation

These limits have to do with employers liability (Employers Liability covers liability arising out of an employees' work-related injuries that do not fall under the workers compensation statute.) --- employees injured while at work are subject to State statutes -- not any limit posed on the declarations of a workers compensation policy.

4. You hire and individual in your farming operation and provide them housing and food as part of the minimal wage you provide for the work they complete. When an audit comes - what all items will be counted toward remuneration (pay) of this individual?

Housing

Food

Wage

Gas

In this scenario, the individual is being provided with housing and food as part of their remuneration. Therefore, these items will be counted towards their pay. Additionally, the wage that is provided to the individual will also be counted towards their remuneration. However, gas expenses are not mentioned as part of the remuneration, so it will not be counted.

Explanation

In this scenario, the individual is being provided with housing and food as part of their remuneration. Therefore, these items will be counted towards their pay. Additionally, the wage that is provided to the individual will also be counted towards their remuneration. However, gas expenses are not mentioned as part of the remuneration, so it will not be counted.

Submit

5. You are obtaining signature pages for Doctor Dental Inc. They have 4 employees as well as 2 corporate officers. Who all will be automatically included in the Workers Compensation coverage - and can they exclude themselves?

All will be automatically included in the coverage -- no person can choose to exclude themselves

Only the employees will be included in the coverage -- and they cannot exclude themselves

All will be automatically included in the coverage -- the corporate officers can choose to exclude themselves

Only the employees will be included in the coverage -- the corporate officers can choose to exclude the employees

Because the legal entity is a Corporation, the Corporate Officers will be automatically included within the Workers Compensation policy. In order to exclude the officers - you must have the officers sign the Iowa Corporate Officer Rejection (14-0061) form found on Homefield

Explanation

Because the legal entity is a Corporation, the Corporate Officers will be automatically included within the Workers Compensation policy. In order to exclude the officers - you must have the officers sign the Iowa Corporate Officer Rejection (14-0061) form found on Homefield

6. Please check below the type of ownership that would be automatically included within a standard Workers Compensation policy.

Individual Owner

Partnership

LLC

Corporation

The only ownership that provides automatic inclusion for owners is the corporation. This means it is very important that discussion is had at time of binding in order to alleviate any confusion at time of audit if a corporate officer does not want to be included.

Explanation

The only ownership that provides automatic inclusion for owners is the corporation. This means it is very important that discussion is had at time of binding in order to alleviate any confusion at time of audit if a corporate officer does not want to be included.

7. When you write a Workers Compensation policy on an LLC -- members of the LLC (similar to corporate officers for a corporation) are automatically included on the Workers Compensation policy?

True

False

Members of the LLC are going to be automatically excluded from coverage on Workers Compensation.

Explanation

Members of the LLC are going to be automatically excluded from coverage on Workers Compensation.

8. You have a prospect come to you that has no employees, but is required to carry WC per the general contractor on a job. You can write his WC through Farm Bureau.

True

False

In order to look at any Workers Compensations policy with Farm Bureau - the business operation must have employees.

Explanation

In order to look at any Workers Compensations policy with Farm Bureau - the business operation must have employees.

9. You have a family farm insured. The legal entity of the operation is a partnership between 2 brothers. Each brother has a child working for the farm. Which individuals in this scenario will be automatically included within the workers compensation policy per State Law?

The brothers as well as the children working on the farm

The brothers only

The children only

None - all are automatically excluded from coverage

Given the legal entity - partnership - the owners are automatically excluded from WC coverage, however, given it is a farm operation - the family members that may work would be automatically included. If they choose to exclude themselves - an Acord 130 needs submitted to underwriting to ensure proper exclusion.

Explanation

Given the legal entity - partnership - the owners are automatically excluded from WC coverage, however, given it is a farm operation - the family members that may work would be automatically included. If they choose to exclude themselves - an Acord 130 needs submitted to underwriting to ensure proper exclusion.